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  • Relentless USD buying amid funding stress boosts USD/JPY further.
  • Risk-on amid global stimulus measures adds to the JPY’s losses.
  • Focus on US stimulus packages, coronavirus updates and Fed operation.

The buying interest around the US dollar remains unabated so far this Tuesday American session, keeping USD/JPY near-daily highs of 107.54.

US dollar rules the roost amid funding stress

Despite disappointing US Retail Sales data and a 46% surge in the coronavirus cases in the New York state, the greenback stands tall against its six major peers amid mounting liquidity concerns, in light of the global economic fallout from the virus outbreak. The US dollar index hit fresh monthly highs at 99.76, currently trading around 99.62, still up 1.60% on the day.

Further, with increased expectations of a big and bold coronavirus economic response from the US amid the US Federal Reserve’s (Fed) credit boost, the sentiment on the US stocks remain elated. Also, the S&P 500 futures rally nearly 4% with the 10-year Treasury yields up almost 14% on the day.

Amid a better market mood, the anti-risk yen continues to draw offers, which in turn collaborates with the bullish momentum seen around the major. All eyes now remain on the US stimulus package, as investors digest the latest comments from US President Trump and Treasury Secretary Mnuchin on the likely measures.

  • US Pres. Trump: Economy will come back very rapidly, progress being made on coronavirus
  • US Treasury Sec. Mnuchin: Relief figures ‘may be bigger’ than what’s in the press

USD/JPY technical levels to watch